14 Mar 2017

Briscoe Group's full-year profit meets forecast

1:53 pm on 14 March 2017

The homeware and sporting goods retailer, Briscoe Group has delivered its forecast record profit on the back of improved sales and profit margins.

Kathmandu says Briscoe Group owes it money for a failed takeover bid.

Briscoe Group's profits were boosted by a property sale and its investment in outdoor goods company Kathmandu. Photo: RNZ

The company has reported a net profit of $59.4 million, up 26 percent on last year, and in line with last month's forecast.

The sales for the 52 weeks ended January were nearly $583m, up about 5 percent on a year ago.

Briscoe's managing director Rod Duke said the retail sector is tough.

"The relatively late start to summer and unsettled weather patterns in most parts of the country made the selling of seasonal products a little tougher but by identifying the issues quickly and holding our nerve we have sold through seasonal stocks at an acceptable rate, protecting both margin and our closing inventory position."

In contrast to other retailers, such as the Warehouse, Briscoe managed to increase its gross profit margin as it sold more products.

The profit was boosted by a $2m one-off gain from a property sale and $4.4m from its investment in outdoor goods company Kathmandu.

Mr Duke said the company was looking to sustain earnings by increasing its online sales, keeping control of its stocks, and improving the range of goods for sale.

"It is clear that the New Zealand retailing environment remains challenging with a number of retailers struggling for growth, but we remain cautiously optimistic about the year ahead."

The company raised its final dividend to 11 cents a share from last year's 9.5c.